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Hate to admit this, but I agree with the radical socialist Paul Krugman. He believes America is entering a Third Depression. The first is the 188o's, the second in 1929 and this one, today.
“Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as depressions at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31."
Krugman goes on to note: "Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.
We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression."
California is already in a great Depression and my good friend Richard Rider outlines all the fiscal reasons. But he did leave out some of the policy reasons:
1. illegal aliens
2. LAUSD has a 60% drop out rate
3. AB 32 is killing jobs and government revenues
4. Unions owning most of government
Combined, fiscal and policy, California has a $40 billion deficit, $525 billion in unsustainable unfunded pension liabilities. Thanks to Richard Rider for putting all of this together.
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“Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as depressions at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31."
Krugman goes on to note: "Neither the Long Depression of the 19th century nor the Great Depression of the 20th was an era of nonstop decline on the contrary, both included periods when the economy grew. But these episodes of improvement were never enough to undo the damage from the initial slump, and were followed by relapses.
We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression."
California is already in a great Depression and my good friend Richard Rider outlines all the fiscal reasons. But he did leave out some of the policy reasons:
1. illegal aliens
2. LAUSD has a 60% drop out rate
3. AB 32 is killing jobs and government revenues
4. Unions owning most of government
Combined, fiscal and policy, California has a $40 billion deficit, $525 billion in unsustainable unfunded pension liabilities. Thanks to Richard Rider for putting all of this together.
More...